Some could be richer than they think because of digital assets, maybe as much as $2,000 for the average Canadian

Some Canadians could be a bit richer than they think, thanks to their digital assets.

As the popularity of online loyalty programs and virtual currencies like Bitcoin continue to grow, it may be a good time to think about what should be done with them.

“It’s really important that people include these intangible assets in their estate plan,” said Chris Buttigieg, senior manager of wealth planning strategy at the Bank of Montreal.

Technology analyst Duncan Stewart estimates the average Canadian now has between $1,000 and $2,000 in value stored online.

“By 2020, the average Canadian upon death will have stored electronic value north of $10,000,” said Stewart, director of research, technology, media and telecommunications at Deloitte Canada.

For wealthier Canadians, that value could be about $50,000 by 2020, he said.

“At the $50,000 level, you’re starting to talk about some real money there both from the interests of the family of the estate and from the government.”

The Bank of Montreal said digital assets are a relatively new area in estate planning. A recent survey by the Bank found that 57 per cent of Canadians had not made any provisions for digital assets in their formal estate plans and the most common answer for not doing so was: “I didn’t think of it.”

Buttigieg said without instructions to an executor or power of attorney, money could be sitting as virtual currency “without an owner,” social media accounts could remain open and vulnerable to hacking and access to online financial accounts could be difficult.

He used the example of a person, taking over an online business after a death, who might not have all the necessary information.

Stewart said writing down a list of all digital accounts with passwords might not be enough as verifying accounts becomes more sophisticated with the use of biometrics, which recognize fingerprints, for example.

Stewart said it’s also important to consider the taxes on digital assets and if continued access to these assets would be considered a transfer of wealth from generation to generation after a family member dies.

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